The changing role of cooperatives in the Swedish housing regime

Context: 🏡 The article titled "The changing role of cooperatives in the Swedish housing regime - a path dependence analysis" is authored by Bo Bengtsson and published in March 2024 in the journal Housing Studies. This publication is relevant for those interested in sustainable housing practices in Europe, given Sweden's significant cooperative housing sector, which constitutes about 25% of the total housing stock. The article employs a path dependence perspective to analyze the historical development of cooperative housing in Sweden.

Key Findings: 📊 The author identifies three critical junctures that have shaped the trajectory of cooperative housing in Sweden:

1. Tenant-Ownership Act of 1930: This act established tenant-ownership as a distinct housing tenure, laying the groundwork for cooperative housing.

2. Universal Housing Regime Post-WWII: After World War II, Sweden adopted a universal housing regime, which positioned cooperative housing as a central pillar in housing provision.

3. Deregulation in 1968-1969: This period marked the opening of the cooperative tenure to market forces, facilitating further expansion and marketization of the cooperative housing sector.

The article highlights the role of national politicians, particularly from the Social Democratic Party, and leaders of cooperative organizations as the main actors driving these changes, while noting the limited involvement of cooperative members compared to similar movements in Norway.

Path Dependence Mechanisms: 🔄 Bengtsson discusses the mechanisms of efficiency, legitimacy, and power that were at play during these reforms, contributing to a path-dependent evolution of the cooperative housing sector. The long-term consequences of these reforms were significant, often exceeding the expectations of the actors involved at the time:

• The 1930 Act ensured the long-term stability of cooperative housing.
• The reforms of the 1940s solidified cooperatives' central role in Sweden's universal housing regime.
• The deregulation in 1968 initiated a trend toward marketization within the sector.

Evolution of the Cooperative Sector: 📈 Since the 1930s, the cooperative housing sector has steadily expanded, currently accounting for 25% of Sweden's housing stock. However, its role has evolved from a social movement focused on providing decent housing for members to an integral component of the national housing regime, and more recently, to a form of marketized tenure.

Implications for Sustainable Housing: 🌍 Bengtsson argues that the Swedish experience illustrates the fragility of a social housing system based on cooperatives, particularly due to tensions between ownership and socio-political objectives. Once the marketization process commenced, it proved challenging to reverse. The path dependence framework applied in this analysis could provide valuable insights into the development of cooperative housing in other countries, allowing for the examination of critical junctures, key actors, and mechanisms of change in various national contexts.

In conclusion, the article offers a comprehensive view of the historical trajectory and current challenges of cooperative housing in Sweden, emphasizing the importance of understanding these dynamics for advancing sustainable housing solutions across Europe.